Dividends Per Share Seventy Two Inc., a developer of radiology equipment, has st

Question

Dividends Per Share Seventy Two Inc., a developer of radiology equipment, has stock outstanding as follows: 81 300 shares of cumulative preferred 4% stock $15 par, and 400,500 shares o $26 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $55,100; second year, $76,400; third year, $80,600 ; fourth year, $98,300 Calculate the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "O". 1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividends per share) Common stock (dividends per share)

Explanation / Answer

Calculate dividend per share :

Annual preferred dividend = 81300*15*4% = 48780

1st year 2nd year 3rd year 4th year Preferred Stock (dividend per share) 48780/81300 = 0.60 48780/81300 = 0.60 48780/81300 = 0.60 48780/81300 = 0.60 Common Stock (dividend per share) 6320/400500 = 0.02 27620/400500 = 0.07 31820/400500 = 0.08 49520/400500 = 0.12

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---